Transit funding crisis tolls for thee

Lawmakers to weigh gamut of options from fare hikes to gas tax

By Chris Camire, ccamire@lowellsun.com

Updated:
12/06/2012 06:34:33 AM EST

BOSTON -- Lawmakers tasked with solving a crushing transportation funding crisis will consider solutions ranging from tax increases to fare hikes to more tolls when they return to Beacon Hill next month.

"This is a time when all those options should be put on the table and considered," said Rep. William Strauss, D-Mattapoisett, who co-chairs the Legislature's transportation committee.

On Tuesday, Gov. Deval Patrick said he plans to put a "long-term financial plan on transportation" before the Legislature in 2013. The state's highway system faces a $240 million operating shortfall for the next fiscal year, while the MBTA is facing a $130 million deficit.

Patrick declined to offer specifics, leaving political observers to speculate on what measures his plan might include.

"If you do transportation-specific revenues, then some variation of the gas tax is really where one has to go, in terms of raising sufficient money to address the scope of the problem," said Michael Widmer, president of the Massachusetts Taxpayers Foundation. "My impression, from his public comments, is that the governor is leery of going back to the gas tax."

Patrick proposed raising the gasoline tax by 19 cents in 2009 to avoid a steep toll increase on the Massachusetts Turnpike to pay off Big Dig debt and reinvest in the state's road and bridges. The move, which would have raised the tax from 23.5 cents to 42.5 cents per gallon, received stiff opposition from the Legislature and went nowhere.

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The state would collect an additional $100 million in annual revenue for every 3-cent increase in the gasoline tax, said Strauss.

Once again faced with a Legislature unwilling to raise the gasoline tax earlier this year, Patrick opted to temporarily address the state's transportation funding problems with a combination of fare hikes and service cuts. The administration could once again find there is little political will to raise taxes.

"There's no appetite for tax increases, not only in transportation, but I think in anything," said state Sen. Jennifer Flanagan, D-Leominster, who is the vice chair of the transportation committee. "That leads us to look at what else is on the table."

If Patrick does bring a transportation-reform bill to the Legislature, Flanagan said he should look at "restructuring how we pay for and deliver resources." She added, "There has to be a top-to-bottom review of transportation and how it's delivered."

Transportation officials have blamed much of the system's financial woes on crushing debt, including debt from the massive Big Dig highway project in Boston. About 30 percent of the agency's budget goes to repay $5.5 billion in borrowing racked up over many years -- rising to more than $8 billion with interest -- making it the nation's most indebted transit system.

Supporters of raising the gasoline tax include Boston Mayor Tom Menino, who said this year he wanted to work with Patrick and legislative leaders to find an alternative to service cuts. Menino said service cuts and fare hikes are a "one-year Band-Aid" that will hurt poor commuters, while raising the gas tax would help dig the MBTA out of its financial problems and also benefit the state's entire transportation system.

"The reality is the transportation system is at a crisis stage," said state Sen. Thomas McGee, D-Lynn, who co-chairs the transportation committee with Strauss. "We can't afford the system we have today."

McGee warned it is "premature" to say what the best solution is to solving the problem. It is important, he cautioned, to first hear what residents expect out of the state's transportation system.

Transportation officials are in the process of holding statewide public hearings focused on road, bridge and other transportation projects. A report will be released in January that lawmakers could use to help shape the future of transportation in the Bay State.

"People will talk about increases in the gas tax, which has remained at the same level for over 20 years," said Strauss. "I have seen that people are talking about tolls. One group issued a public proposal for a change in payroll tax withholding. I have colleagues who are proposing added fees for certain types of cars. This is a time when all those options should be put on the table and considered."

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